18 Dock Corporation makes two products from a common input. Joint processing costs up to the split off point total $33,600 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below. Allocated joint processing costs Sales value at split off point Costs of further processing Sales value after further processing Product Product Y Total 16,800 16,800 33,600 $ 24,800 $ 24,000 $48.000 $ 15,000 $18,700 533,700 $35,500 $ 45,100 $80,600 What is the minimum amount the company should accept for Product X in it is to be sold at the split-off point? 18 Multiple Choice $31,800 $20,500 $16,800 O $35,500 19 Buy-Rite Pharmacy has purchased a small auto for delivering prescriptions. The auto was purchased for $24,000 and will have a 6-year useful life and a $6,000 salvage value. Delivering prescriptions (which the pharmacy has never done before) should increase gross revenues by at least $28,000 per year. The cost of these prescriptions to the pharmacy will be about $22,000 per year. The pharmacy depreciates all assets using the straight-line method. The payback period for the auto is closest to ignore income taxes.): 19 Multiple Choice 2 years 1.8 years O 4 years o 12 years Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.) 21 Investment required in equipment Annual cash inflows Salvage value of equipment Life of the investment Required rate of return $30,000 $ 6,000 $ 15 years 10% The company uses straight-line depreciation on all equipment Assume cash flows occur uniformly throughout a year except for the initial investment Click here to view Exhibit 13B 1 and Exhibit 13B 2. to determine the appropriate discount factor(s) using the tables provided The internal rate of return of the investment is closest to 21 Multiple Choice O 16% o 18% 20% 22%